Since Germany is a successful economy thanks to its efficient international trade relations, foreign company owners decide very often to open as well a branch in this country
. Entrepreneurs don’t need governmental approval for the branch set up
, but they need to contact the relevant authorities before effectively starting the business operations. Our specialists in company formation
can explain to you what are the financial responsibilities of branches
and the taxation rules in Germany
Germany branch taxation
Even though branches in Germany
have no legal personality, before the effective start of the business operations, branches
need to be in the evidence of the Commercial Register
. The responsibility for the financing of branches
remains one of the attributions of the parent company. The business profit obtained by the branch in Germany is going to be taxed
at the rate of 15%.
Other transactions which take place between the parent company and the permanent establishment in Germany
are not taxed by the German state
. One of our experts in company formation in Germany
can explain to you when and how a branch needs to fulfil its tax attributions
in order to comply with the German law.
Other requirements for branches in Germany
Since branches in Germany
are taxed at the rate of 15%, they need to have a tax number so that they can be in the evidence of the local tax authority
. Our consultants can help you with details concerning the procedure for the obtaining of the steuernummer (tax number) as well as the process of registration with the Commercial Register.
The tax amounts for the foreign branches established in Germany are the same with those applied to local companies. This shows that the state maintains an equal climate in order to encourage foreign investors to contribute to the local economy. Moreover, deductions can be obtained from the transactions performed between the branch and the parent company.
Feel free to contact
our specialists in company registration in Germany
for more information concerning taxation issues for branches in Germany